Question

Name some reasons why methods analysis is needed. How is methods analysis linked to productivity improvements?

Answer 1

Objectives of Method analysis is to analyse the existing procedures and operational methds in use, find out the ways how they can be improved to add more value to the end customers and bring more efficiency to the processes and improve the process outcome. It can be done by removing a non - value adding procedure, introducing a new method or improving the existing one. Method analysis helps to identify the steps or procedures which affect the productivity and efficiency in adverse ways and replacing / improving with those which add more value and improve process ouput per unit of input and enhance customer satisfaction.

Requirements of effective inventory management.

(i) A robust system of forecasting of demand and an agile process to implement the changes into supply chain to meet the fluctuations.

(ii) Effective communication channels which pass on quick information from both supply end and demand end to incorporate changes.

(iii) Systems of physical handling and maintaining the inventory at least cost. Reliable logistical partners to put the plans into action in realistic manner.

(iv) Ability to make reasonable estimate of lead time, holding cost and ordering cost, by incorporating all relevant factors.

(v) Tools to monitor the current inventory on hand and its pattern of movement.

(vi) Use of technology for tracking and managing the inventory and make the processes leaner.

(vii) Systems to identify the most valuable items from others ( fast moving items which contribute highest to the business and the ones which seldom sell) and put them on priority.